KAL Group (KAL) H2 2025 earnings summary

Executive summary

• Strong recovery in the second half, with recurring headline EPS up 11.2% year-over-year and the lowest debt-to-equity ratio in 15 years, supported by robust cash generation and margin improvements.

• Strategic focus on core segments (PEG retail and Agrimark) after divestment of non-core businesses (TAR, Tego, and Agriplas).

• Group footprint rationalized, prioritizing high-quality sites and direct sales over pure site count growth.

• Revenue was impacted by lower average fuel prices, but operational efficiencies and margin management offset some of the pressure.

Financial highlights

• Gross profit increased by 3.9% year-over-year to R3.09bn, with gross margin improving to 15.2%.

• EBITDA (excluding impairments and disposals) up 7.5% to R923.8m; recurring headline EPS up 11.2% to 624.47c.

• Dividend per share increased 16.7% to ZAR 2.10 (210c), with cover at 2.8x.

• Net cash flows from operations up 10% to ZAR 933 million; interest-bearing debt reduced by ZAR 436 million.

• Revenue for FY25 was R20.3bn, down from R21.7bn in FY24, mainly due to fuel price deflation.

Outlook and guidance

• F2030 strategy targets 15% CAGR in recurring headline EPS, 15% ROE, 14% ROIC, and 40% debt-to-equity.

• PEG and Agrimark to drive growth via network expansion, market share, and digital innovation, with five new PEG sites and two new Agrimark stores planned for F2026.

• Lower interest rates and positive farm conditions expected to support future growth.

• F30 profit before tax target set at R1.5bn, including acquisitions.